A 911 call came in around 11:30 p.m. after someone noticed the body in the cart at H and Westmoreland streets.
The man was discovered in the shopping cart with blankets and debris, and had no shoes or socks. He also had no identification on him but police said they believed he was in his 30s.
"It's not getting out of hand, it's already out of hand," said one neighbor who didn't want to be identified. She wasn't surprised by the gruesome discovery.
"Not surprised if something last night because it won't be the first time, that's for sure," she said.
Police told Action News the man had injuries to his face and blood around his mouth and eyes. He was pronounced dead at the scene.
"Right now, we don't know the cause of death. We don't know if there's any trauma," Philadelphia Police Chief Inspector Scott Small said.
Officers also followed a trail of blood about a half a block to an abandoned house. The occupants inside were taken in by police for further investigation.
Police said early Thursday an arrest was made but have since updated to say there have been no arrests. Investigators have not ruled out an overdose death but are waiting on toxicology results.